The Central Bank of Nigeria (CBN) has set new transaction limits on contactless payments after issuing guidelines for commercial banks and other financial institutions to adopt.
In a statement released on Tuesday, the CBN said contactless payments are now limited to N15,000 per transaction, but the daily cumulative limit is limited to N50,000.
Contactless payments are transactions done without physical contact with devices. Pre-paid, debit and credit cards, tokens, mobile electronic devices, stickers, fobs and wearable devices can be used for contactless payments.
Individuals using the contactless payment options can carry out transactions below the limit without having to provide their pin or biodata.
However, for transactions above the set limit, the user will be requested to provide their pin and biodata, while the Know Your Customer (KYC) requirements would also be applied by financial institutions in Nigeria.
“Following the issuance of the Guidelines on Contactless Payments in Nigeria and in cognisance of the risks associated with contactless payments, the Bank hereby defines transaction limits above which verification and authorisation are required,” the statement reads.
What CBN is saying on Contactless payments
CBN further stated that: “Higher-value contactless payments are transactions that exceed the above stated limits and shall require appropriate verification and authorisation.
“For these transactions, existing KYC requirements and limits on the electronic payment channels shall apply. Limits above this stipulated daily cumulative limit shall be conducted using contact-based technology.”
Why do banks have transaction limits?
The new transaction limits for contactless payments through accounts and wallets in Nigeria, according to the CBN, is to safeguard Nigeria’s financial payment system
